Mokgoro's spokesperson, Vuyisile Ngesi, says the premier will announce a progress report on the illegal investment done by four municipalities with the now-defunct bank. Ngesi tells OFM News that the provincial government followed all the processes that resulted in arrests and disciplinary measures against implicated senior municipal officials, such as Municipal Managers (MM), after municipalities invested R314 million of taxpayers’ money. 

OFM News previously reported that the Sekela Xabanisa forensic investigation report uncovered that the four municipalities which invested millions of rands were in contravention of the Municipal Finance Management Act (MFMA).

He says if people were to be found guilty, proper steps will be taken like in other cases. “Some people who are in the administration, if found guilty, proper punishment would have to be effected," he adds. The investigators found that Madibeng Local Municipality invested R31 million of their conditional grant; Dr Ruth Segomotsi Mompati District Municipality invested R150 million - of which R100 million was from the regional infrastructure grant (RIG), R25 million was from the equitable share-free basic services, and R25 million was from the building fund. The Moretele Local Municipality invested R50 million from the 2017/18 water services infrastructure grant.

OFM News